Ironically, by graduation it looks like Father Ilya is probably one of the least racist of the two war bands! Particularly since he specifically endeavors to judge everyone by their own merit now. 

I also imagine that next to none of the other graduates know about Ilya's past aside from the name. Most everybody who pays attention to the topic knows the Bjornlie family businesses. However, while never left starving on the streets, Father Ilya hasn't had a cushy life since he was breastfeeding. There's always been lessons, training, and tasks. Aside from the introduction of true risk of death and dormitories, I don't think the Red Seminary was a huge lifestyle shift for him.